Michael Jordan recently claimed a significant victory in a different kind of court than the one he’s used to. Last week, a federal court in Chicago awarded Jordan $8.9 million dollars for the unauthorized use of his likeness in a supermarket advertisement.
The following advertisement was used in a Sports Illustrated by Safeway, which owned the now-defunct supermarket chain Dominick’s. It congratulated Michael Jordan on his NBA Hall of Fame induction and referred to him as “a cut above,” with a coupon for $2 off a steak at Dominick’s.
Unfortunately for Safeway, nobody ever asked Jordan for permission to use his name which turned out to be a HUGE mistake. Jordan wasted no time taking Safeway to court. A previous ruling sided with Jordan and all that was left was to determine exactly how much Jordan would get. Jordan was asking for no less than $10 million, arguing that he would never have done a deal like this in the first place because it was too small. Safeway, on the other hand, was saying that based on its calculations from previous deals done by Jordan, it should be somewhere in the $120,000 range.
As always, Jordan won.
The best part, or worst part for Safeway, is that only two of these coupons were redeemed…talk about negative return on investment…
Importance of Brand Protection
What this teaches us, however, is the importance of protecting your brand. Michael Jordan worked extremely hard to build and maintain a globally recognized brand. His performance on and off the court has created a standard that every modern day athlete strives to adhere. As is the case for most things, his brand comes with a monetary value associated with it and it is his responsibility to maintain that value.
It may seem ridiculous that he sued Safeway and many wonder why he asked for so much, especially when there were only two coupons redeemed, but it actually makes a lot of sense. Jordan’s brand makes him a lot of money, whether it is through licensing deals, his shoes, or any other endorsement deal he has in place. He has proven time and time again that he is a savvy business man, and he was not about to let a company devalue his brand.
When a company comes in and decides to attempt to use his name for commercial profit, without first asking him, it could create the image that he endorses the product. Had the court found that Safeway “only” owes him $120,000, what precedent would that set? It would potentially lead to companies with deep pockets who spend much more money than that on advertising using his name without bothering to ask him first.
With an $8.9 million verdict, however, everyone will have to think twice before going against Jordan…just like old times.
